Your lender will monitor your financial situation thru the entire process by asking for updated documents and pulling credit several times

Do not make any major financial changes while waiting to close on your home to help prevent any issues that could delay or prevent you from closing.

What NOT To Do before Closing on Your New Home

Time and time again, as much as we tell home buyers not to, they will put there mortgage approval in jeopardy. If it doesn’t destroy your ability to get financed it can cause serious delays.

Remember you are in a legal and bonding contract and all deadlines and dates should be taken very seriously. A seller never has to grant you an extension.

Drag Your Feet Submitting Paperwork

Yes it is a pain in the ask the bank seems to want an never ending flow of paperwork. Don’t fight it just get them the paperwork they request immediately. It takes time for the paperwork to move thru the mortgage process. Don’t you be the hang up because it took you a week to get the bank a document.

Also, keep your paycheck stubs and bank statements handy the bank may request new ones before the mortgage process is over.

Go On Vacation or an Extended Trip

Don’t go into escrow knowing you have a two week vacation planned right in the middle. There may be documents to be signed or paperwork to submit that you may not be able to do while you are away.

Time is of the essence when the bank requests a document or needs a signature. Your financing will come to a screeching halt if you delay.

Open New Lines of Credit

It’s exciting buying a new home but don’t rush off and open a furniture store credit card or a Home Depot credit card. Even if you don’t use the line of credit a new line of credit effects your credit score.

The credit reporting agencies look at available balances as part of the algorithm to determine your score. The company financing your home loan will be updating your credit score throughout the process.

As a matter of fact they will pull your credit score with in 24 hours of your scheduled closing to make sure there have been no significant changes.

Make Large Purchases

You may make plenty of money and think you can handle the payments of a new car or boat. Or, even $15,000 of new furniture. But, don’t forget a large purchase will change your credit profile.

Even if you can afford it, a significant purchase on credit will delay your financing as ratios and your credit score changes. Just wait until you close to make that large purchase.

Change or Quit Your Job

But believe it or not changing jobs can impact your financing as well. Going from hourly to salaried or losing overtime will force the bank to re-look at your financial situation.

There could be some job changes that can also prevent your financing period. A lender does not want to see you go to one job to a totally unrelated job. If you are completely changing careers, you don’t have the track record to show the bank in a completely unrelated career.

Make Large Unusual Deposits into Your Bank Account

The bank is going to want to see two months of your bank statements and you may have to update them along the way.

It is not unusual for family members to want to give you money to help you get a start with your new home. Just wait until after you close.

Deposits that aren’t connected to a paycheck will have to be sourced and gift letters provided and can cause delays in underwriting.

Don’t Close Any Credit Accounts

Now this may seem counter intuitive but don’t close any accounts just before closing on a home. It might seem like the right things to do, but it is not.

Say you have four credit cards. Two of them are opened recently one is 2 years old and on you have had for 12 years. But you don’t really use or need the one you have had for 12 years so you decide to close it.

Oops, the period of time you have held that card and made timely payments is important!